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Uber on course to lose £1.8bn in 2016, leaked financials reveal

San Francisco-based group has seen its value jump to $65 billion but is said to have haemorrhaged another $800 million in the third quarter

Ben Chapman
Tuesday 20 December 2016 17:46 GMT
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The ride-hailing company continues to make heavy losses
The ride-hailing company continues to make heavy losses

Uber lost more than $2.2bn (£1.8bn) in the first nine months of 2016 despite surging revenues, according to reports.

While the San Francisco-based group has seen its value jump to $65bn it is said to have haemorrhaged another $800m in the third quarter and is now on track to lose more than $3bn in 2016. That number does not include further losses made on its now-defunct Chinese operation.

Uber has been hit by a price war with rival Lyft in America and has also spent heavily on ambitious growth plans.

As a private company, Uber does not release full financials, but internal information leaked to Bloomberg shows that the huge losses come despite revenues rising to $3.8bn in the last nine months and set to reach more than $5.5bn for the full year.

Even in the US, Uber's home market, the company lost $100m in the second quarter. Lyft, which is Uber's largest US competitor, has promised investors that it will keep its losses below $150m a quarter.

Bookings - the total fares paid by passengers - reportedly rose to $5.4bn in the third quarter, up from $5bn in the previous three months and $3.8bn in the first quarter. Uber takes commission out of those bookings.

After paying its drivers it is understood to have hit revenues of $1.7bn in the three months to the end of September, up more than half from $1.1bn in the previous quarter.

The group has ramped up spending on new technology and other initiatives, including its controversial self-driving car service and Uber Eats food delivery.

The news comes as Uber said it had discovered safety concerns in its autonomous vehicles, which have trouble crossing cycle lanes.

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